Banco Popular is offering a 9% interest on a mortgage loan until July 31, 2009.
The loan is only valid for Dominican pesos...RD PESOS...
809-544-5555
Popular en l?nea
On specific properties through certain agents...
Not that the agents would make the commission payable to the banks from selling at overprice.. that would just be dishonest wouldn't it....
And say RD$3m would be $24k per month for a year... then to $35k after 12 payments, rather a jump wouldn't you say...
Settled into your new house ok now Snr? ok, lets hit them with the increase.
I'm not saying its not got its place, and if the banks are assessing the ability to repay on the high figure and not the low it
should be safe.
But my opinion is that its a dangerous game to play to curb the low sales in the property sector putting something like this into mass market. If demand is low why are the values not falling like they would anywhere else in the world? Instead they are just finding creative ways to lend people more money, opening up a tier that before wouldn't have afforded it (at a 22% rate), and maybe forgetting that after 3 years of this deal, it could easily be 22% or more again..... (22% would be $55k per month).
People have said that banks here have always worked with the borrowers who fall behind to help bring them back straight, repossessions are low etc... which is absolutely true. Can they keep doing that when they have very large numbers behind? less likely.